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Things to Consider when Determining the Appropriate Property Value and Asking Price

12/14/2012

Everyday, new homes are listed throughout the country. While there are many factors that can impact how quickly a particular home sells, one issue is often overlooked by frustrated sellers. If a home fails to entice any buyers within one month, chances are the listing price is not right. Generally, the listing price should be in line with the current market value of the home. However, many sellers don’t realize that the market value of a home is impacted by many more factors than simple square footage and the quality of the appliances. If you need help determining the market value of your home and setting the right price, talk with your real estate agent and consider some of the tips outlined here.

One of the first steps a seller may want to consider when determining the appropriate property value is a comparison with recently sold properties. By comparing the square footage, lot size and overall amenities of your home to those that have already sold, you and your agent may gain some valuable insight into the true market value of your property and assistance in setting the asking price. Also, as you get closer to putting your home on the market, try to keep track of other properties listed in the area. By looking at current listings, determinations can be made about how well homes in the neighborhood are selling and how your assessment of your own property compares with similar sellers.

Regardless of how long you have lived in the home, take account of your personal investment. If you have lived in the home for several years, you have probably made a number of repairs or upgrades to the property. As you prepare to list your home, take notes on any such improvements and consult your personal records if necessary. By assessing the value of improvements made to the property, you will be able to work with your agent to determine how your investment affects the current market value of your home.

One of the best ways to determine how your home’s amenities impact the value is to make a detailed list of the property’s features. Your list should include all recent updates to the property, any items that might require repairs and an assessment of the home’s overall condition. After compiling your list, work with your agent to establish how each individual feature impacts the overall value of the home and the eventual asking price.

When trying to calculate the market value of your property, you should also account for the neighborhood. Consider how factors such as nearby schools and the proximity to desirable businesses or recreation areas might interest prospective buyers. Furthermore, depending on what type of home you own, you may want consider the home’s location within the neighborhood. A home located at the end of a cul-de-sac can have added value for families with young children hoping to avoid high traffic streets.

After you have analyzed the previous factors, home buyers should try to work with their agent to set the right price for listing. A list price that is either too high or too low could pose a number of problems for a home seller.

If the list price on your home is too high, you may not receive any serious offers. After your home has been on the market for 30 days or longer, buyers may also come to see your property as less desirable. Furthermore, buyers expect sellers to reduce prices and be more responsive to offers if the home has spent more than a month on the market.

On the other hand, if the list price is too low, you will not earn what you truly deserve. In some cases, home buyers might also assume that the house has a number of flaws or is otherwise undesirable when the list price falls too far below the market value. After working with your agent to determine the market value of your home, you should consider setting your list price as close as possible to home’s current market value.

As you prepare to sell your home, there are a number of factors to consider when determining the appropriate property value and listing price. You will have a good starting point if you are able to educate yourself about both local and national market trends. Then, by gaining an understanding of how your home stacks up to the rest of the market, you will have an opportunity to set an informed price that corresponds to the home’s true market value. Finally, be sure to work with your real estate agent and let his or her experience and knowledge guide your decision.